Form W-5 - Earned Income Credit Advance Payment Certificate - 1998


Department of the Treasury
Form W-5
Internal Revenue Service
Who Is Eligible To Get Advance
Who Is a Qualifying Child?
EIC Payments?
Any child who meets all three of the
Changes To Note
following conditions is a qualifying child.
You are eligible to get advance EIC payments
Beginning in 1998, modified AGI (adjusted
if all three of the following apply.
1. The child is your son, daughter, adopted
gross income) includes tax-exempt interest
child, stepchild, foster child, or a descendant
1. You have at least one qualifying child.
and certain nontaxable pensions, annuities,
(for example, your grandchild) of your son,
and IRA distributions. For details, see the
2. You expect that your 1998 earned
daughter, or adopted child.
1997 revision of Pub. 596, Earned Income
income and modified AGI will each be less
Note: An adopted child includes a child
Credit. Also earned income does not include
than $26,473. Include your spouse’s income
placed with you by an authorized placement
workfare payments. These are cash payments
if you plan to file a joint return. As used on
agency for legal adoption even if the adoption
certain families receive from a state or local
this form, earned income does not include
is not final. A foster child is any child you
agency that administers public assistance
amounts inmates in penal institutions are paid
cared for as your own child.
programs funded under the Federal
for their work. For most people, modified AGI
Temporary Assistance for Needy Families
is the same as adjusted gross income. But
2. The child is under age 19 at the end of
program in return for (1) work experience
see the 1997 revision of Pub. 596 for
1998, or under age 24 at the end of 1998 and
activities (including work associated with
information about how to figure your 1998
a full-time student, or any age at the end of
remodeling or repairing publicly assisted
modified AGI if you expect to receive
1998 and permanently and totally disabled.
housing) if sufficient private sector
tax-exempt interest; nontaxable payments
3. The child lives with you in the United
employment is not available, or (2) community
from a pension, annuity, or an IRA; or you
States for over half of 1998 (for all of 1998 if
service program activities.
plan to file a 1998 Form 1040.
a foster child). If the child does not live with
3. You expect to be able to claim the EIC
you for the required time because the child
for 1998. To find out if you may be able to
was born or died in 1998, the child is
Use Form W-5 if you are eligible to get part
claim the EIC, answer the questions on page
considered to have lived with you for all of
of the EIC in advance with your pay and
1998 if your home was the child’s home for
choose to do so. The amount you can get in
the entire time he or she was alive in 1998.
How To Get Advance EIC
advance generally depends on your wages. If
Note: Temporary absences such as for
you are married, the amount of your advance
school, medical care, or vacation count as
EIC payments also depends on whether your
time lived at home. Members of the military
If you are eligible to get advance EIC
spouse has filed a Form W-5 with his or her
on extended active duty outside the United
payments, fill in the 1998 Form W-5 at the
employer. However, your employer cannot
States are considered to be living in the
bottom of this page. Then, detach it and give
give you more than $1,363 throughout 1998
United States.
it to your employer. If you get advance
with your pay.
payments, you must file a 1998 Federal
Married child. If the child is married at the
If you do not choose to get advance
income tax return.
end of 1998, that child is a qualifying child
payments, you can still claim the EIC on your
only if you may claim him or her as your
You may have only one Form W-5 in effect
1998 tax return.
dependent, or the following Exception
with a current employer at one time. If you
applies to you.
and your spouse are both employed, you
What Is the EIC?
should file separate Forms W-5.
Exception. You are the custodial parent
The EIC is a credit for certain workers. It
and would be able to claim the child as your
This Form W-5 expires on December 31,
reduces tax you owe. It may give you a
dependent, but the noncustodial parent
1998. If you are eligible to get advance EIC
refund even if you don’t owe any tax. For
claims the child as a dependent because—
payments for 1999, you must file a new Form
1998, the EIC can be as much as $2,271 if
W-5 next year.
1. You signed Form 8332, Release of Claim
you have one qualifying child or $3,756 if you
to Exemption for Child of Divorced or
have more than one qualifying child. If you do
You may be able to get a larger credit
Separated Parents, or a similar statement,
not have a qualifying child, you may still be
when you file your 1998 return. For
agreeing not to claim the child for 1998, or
eligible for a credit of up to $341, but you
details, see Additional Credit on page 2.
cannot receive advance EIC payments. See
Who Is a Qualifying Child? on this page.
(Continued on page 2)
Give the lower part to your employer; keep the top part for your records.
Detach here
Earned Income Credit Advance Payment Certificate
OMB No. 1545-1342
Use the current year’s certificate only.
Give this certificate to your employer.
Department of the Treasury
This certificate expires on December 31, 1998.
Internal Revenue Service
Type or print your full name
Your social security number
Note: If you get advance payments of the earned income credit for 1998, you must file a 1998 Federal income tax return. To get advance
payments, you must have a qualifying child and your filing status must be any status except married filing a separate return.
I expect to be able to claim the earned income credit for 1998, I do not have another Form W-5 in effect with any
other current employer, and I choose to get advance EIC payments
Do you have a qualifying child?
Are you married?
4 If you are married, does your spouse have a Form W-5 in effect for 1998 with any employer?
Under penalties of perjury, I declare that the information I have furnished above is, to the best of my knowledge, true, correct, and complete.
Cat. No. 10227P


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